Assume the market depicted in the graph is in equilibrium. If the price is subsequently set at $28, which of the following statements is true?
I. Some producers will gain surplus.
II. All consumers will lose surplus.
III. Total surplus may increase or decrease.
A)III only
B)I and III only
C)I and II only
D)I, II, and III

Question

Assume the market depicted in the graph is in equilibrium. If the price is subsequently set at $28, which of the following statements is true?
I. Some producers will gain surplus.
II. All consumers will lose surplus.
III. Total surplus may increase or decrease.
A)III only 
B)I and III only 
C)I and II only 
D)I, II, and III

Quizplus · Accepted Answer

The Answer of  Assume the market depicted in the graph is in equilibrium. If the price is subsequently set at $28, which of the following statements is true?
I. Some producers will gain surplus.
II. All consumers will lose surplus.
III. Total surplus may increase or decrease.
A)III only 
B)I and III only 
C)I and II only 
D)I, II, and III

Assume the Market Depicted in the Graph Is in Equilibrium